howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
a nobel prize winning economist, paul krugman, has praised our government for their handling of the economy.
he added that mr brown was implementing the most intelligent policies, of all the european nations.
makes you think, doesn;t it?
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
I do understand that, it is a world recession, not british.
Lets just hope we get out of it soon
And did Paul Krugman congratulate Brown on putting our kid's kid's kid's into a mountain of debt for the next few decades too?
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i can only comment on what the chap said, i suspect that he knows more about the subject than i do.
he made his judgement based on the how the major economies are handling the recession.
maybe the others are deeper in debt?
i remember reading that the social security committments of the other member states are much higher than us.
whether that is still true, i do not know.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
We can all remember 360 economists like this man Krugman who claimed Geoffrey Howe's budget was a disaster when in fact it set the basis of economic recovery.
Lets face it Brown has set this country up for this economic disaster with 12 years of excessive spending and borrowing while also screwing up banking regulation. Nothing some oddball socialist economist can say will ever change that fact.
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
Barryw iv been agreeing with you for so long
now you start this again lol
Guest 686- Registered: 5 May 2009
- Posts: 556
Brown may have been good as the Chancellor of the Exchequer but he should never have been PM in my opinion - not without going to the country at any rate. I think it worth remembering that Labour inherited a pretty stable economy when they took over from the last Tory government. Whether that has any bearing on the current economic mess I have no idea but, in all fairness, this crisis wasn't of our making in the first place but greedy American bankers (or that's how I understand it).
Phil West
If at first you don't succeed, use a BIGGER hammer!!
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Phil - economies work over cycles of growth and decline, it is an inevitable as night following day. Brown's hubris in his claim to have banished boom and bust gives you a clue as to why we are in such a mess.
The nations finances can be thought of in the same way as your own but just more complex. As your income rises you can spend more and borrow more but that borrowing must always be servicable and must be repaid. When your income falls for some reason you find it more difficult to manage and are at risk perhaps of defaulting on debt. Where a country is different is that it can just print money (quantative easing) but even so that creates another bill that will need to be repaid, that bill is in the form of domestically induced inflation.
The time when a nation should be repaying its debt burden is during the growth cycle of the economy so when the economy slows down it can afford to increase spending to stimulate demand (such as lowe interst rates, lower taxes, capital spending and revenue spending through inevitable increased burden of benefit payments).
Brown did not do the latter. While the economy was growing he spent more and borrowed more so when we entered the slowdown there was already huge debt levels. There is an argument over figures for that because so much of the UK debt is 'off balance sheet' as pension debt and PFI debt, but it is debt nevertheless that the public will have to repay through taxes. Brown has critised companies for hiding problems by false accounting but that is exactly what he has been doing (Enron anybody?).
The other big mistake was his changes to banking regulation that led to the crippling of our banks and making the recession in the UK a lot worse.
You cannot just blame US banks or the 'world economy'. He failed to manage our economy in a sensible manner and as a result of that and his regulatory changes the world recession for the UK got a whole lot worse.
I would rank him at the bottom of Chancellors, the most disasterous we have ever had.
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
Barryw
I would SAY lamont tried to be the worse chancellor, but hey I will told im disagreeing with you AGAIN!!
BUT I respect your right to post
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Keith - be fair to Lamont, he was landed with membership of the EMU by Major (against Mrs T's wishes) and had to follow the EMU rules until forced out. Our exit was the catalyst for economic recovery.
At least Brown did not join the Euro - we would be in an even worse state if he had.
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
OK BAZ LOL
Guest 686- Registered: 5 May 2009
- Posts: 556
BarryW - Thanks for that thumbnail description. Makes a bit more sense when simple, plain English is used.
Phil West
If at first you don't succeed, use a BIGGER hammer!!
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barryw,dont start me of on the euro,madelson is on about ditching the quid in faver of the euro.what ever the little dwarf wants the little dwarf gets.daily express headlings backend of last week.
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
little dwarf? I dont realy care pound or euro
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
lost me there brian, a little while ago on here, you were banging the drum for the euro and further integration.
who is the dwarf incidentally?
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
howard dwarf = madelson.yes i was banging tha big drum for the euro and futher intergration,still am.the daily express ran the story front page.as i said what the little man wants he gets.
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
forgive me if im wrong Brian but if yoyur wanting the Euro and Mandelsdon is pushing for it, shouldn't you be pleased?
Guest 686- Registered: 5 May 2009
- Posts: 556
I'm not entirely anti-Europe but I do feel that in order for the UK to retain control of its finances then adopting the Euro is a definate NO. Unless the EU can be returned to what was originally intended, a trading block, then pulling out altogether seems a good idea.
Phil West
If at first you don't succeed, use a BIGGER hammer!!
Guest 674- Registered: 25 Jun 2008
- Posts: 3,391
PHIL don't think we could afford,or want to pull out now
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
kieth, not knocking mandleson just saying he was pushing for it.
